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State Funding Cuts: Homeowner Blues

These states are experiencing the crunch at the expense of public welfare. Here are the latest numbers.

A planned shutdown of a prison, a suspended public works program, and a potential addition to the job cuts are all imminent in the budget shortage of three states. State budget deficits have been an issue since the middle of last year and the spawned financial crisis has pulled down consumer confidence significantly. As business activities waned, local governments hauled less taxes and now face the trouble of sustaining current expenses and instituting welfare programs.

Michigan: After a $134 million deficit, the state has approved the closing of a prison and prison camp with a combined total of 1,900 beds, saving the state $42 million annually according to Businessweek. In the coming months, the next casualty will be the education sector.

Minnesota: Tax collections were extremely down for November. There will be an estimated deficit of $5.27 billion until June 2011. What is to be affected? Jobs, healthcare, and public infrastructure.

California: Until 2010, the Golden State predicts an even massive $41.8 billion in financial shortage. The state takes a halt in financing infrastructure projects to keep expenses within the limit.

Florida: The current deficit stands at $2.2 billion that has gotten investors panicking. Corporate taxes were down due to lackluster sales.

Wisconsin: After two years, there will be an estimated revenue shortfall of $5.4 billion. Building projects and educator salary hikes are set aside in the planning.

Ohio:Tax revenues have increased the budget gap to $640 million. The most affected will be worker salaries that will become slashed significantly.

Budget deficits reduce opportunities for more access to government-provided welfare. Surprisingly, even New York and Arizona are facing downturns in their revenue collections. That leaves homebuyers to be careful when choosing locations. Since analysts are skeptic on the economy’s recovery from recession, homebuyers need to consider the affected programs aside from the usual factors that are taken into account during home buying.

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